Method for transferring funds

ABSTRACT

A method to transfer money to a payee&#39;s payment card account, without requiring an additional payment card or without acquiring a payee&#39;s payment card information is disclosed. A payee registers a payment card with a service provider. The payment card is associated with a payment card account. A payor transfers an initial amount of money to the service provider to be given to the payee, when payee uses the registered payment card for a specified spending category. The service provider stores the money until the payee uses the registered payment card to make a qualified purchase.

RELATED APPLICATIONS

The present application is a continuation of U.S. patent applicationSer. No. 12/075,655, filed Mar. 13, 2008, the content of which areincorporated by reference in their entirety.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present disclosure relates to a service provider and a method oftransferring funds using the service provider. More particularly, thepresent disclosure relates to a service provider for storing an initialamount of money and transferring at least a portion of that money to oneor more registered payment card accounts.

2. Introduction

A gift card is often used when giving money as a gift. A gift card is asubstitute for currency, and is often a form of a physical card with anassociated stored value. The gift cards may be store-specific or a thirdparty specific, such as a credit card company specific. However, usingthe gift card to give money requires purchasing and delivering the giftcard to the recipient. Thus, a gift card often is not a fast way ofgifting money. Moreover, a gift card adds an extra card to the giftee'swallet, increasing the giftee's accounts to manage, and it is prone toloss or theft.

Another option when gifting money involves directly depositing the giftamount to the giftee's bank account. However, this does not allow thegiftor to direct how the giftee can spend the money. Furthermore, thisoption requires the giftor to acquire the bank account information ofthe giftee.

Accordingly, conventional approaches to giving money as gift are notfast and efficient. Thus, there is a need for fast and efficienttransfer of money from a giftor's bank account or payment card accountto a giftee's bank account or payment card account while giving thegiftor the ability to specify a spending category.

SUMMARY

The present disclosure provides a method for transferring an amount ofmoney to a payee's registered payment card account. The method includesregistering at least one payee payment card with a service provider. Theat least one payee payment card is associated with at least one paymentcard account. The method further includes transferring an initial amountof money from at least one payor to the service provider. The serviceprovider stores the initial amount of money. The method also includesstoring at least one spending category specified by the at least onepayor. The service provider checks a transaction history of the at leastone registered payment card account for a qualified purchase, whereinthe qualified purchase is a purchase matching the at least one spendingcategory. A portion of the initial amount of money is automaticallytransferred to the at least one registered payee payment card accountupon identifying at least one qualified purchase on the transactionhistory.

According to an exemplary embodiment, the method may include notifyingthe payee about the initial amount of money and the at least onespending category. The at least one spending category may include one ormore of an individual point of sale, a chain of stores, or a pluralityof businesses in a same industry. The method may further includenotifying the payee about an identity of the payor. Notifying maycomprise one or more of sending an e-mail, sending a text message,sending a voice message or calling the payee.

According to yet another exemplary embodiment, the method may includegenerating a payee profile with the service provider. The payee profilestores information comprising the initial amount of money, a purchasehistory and the portion of the initial amount of money transferred tothe at least one registered payee payment card account. The method mayalso include receiving a request from the payee to query the payeeprofile and providing the information stored on the payee profile to thepayee.

According to another exemplary embodiment, the method may includerequesting a percentage of the initial amount of money from the one ormore payors as a service fee for using the service provider. The methodmay also include charging a percentage of the initial amount of money tothe one or more registered payee payment cards as a service fee forusing the service provider. The one or more payors may use a third partyto pay the initial amount of money, the third party comprising one ormore of a payment card company or an escrow service.

According to yet another exemplary embodiment, the method may includecomparing a monetary value of the qualified purchase to the initialamount of money. If the monetary value of the qualified purchase is lessthan the initial amount of money, the service provider transfers a fullamount of the monetary value of the qualified purchase to at least oneregistered payee payment card account. If the monetary value of thequalified purchase is more than the initial amount of money, the serviceprovider transfers the initial amount of money to the at least oneregistered payee payment card account.

The present disclosure further provides a method for using a paymentcard. The method includes registering one or more payment cards with aservice provider. The one or more cards are associated with one or morepayment card accounts. The method also includes using the registered oneor more payment cards for a qualified purchase. The qualified purchaseis a purchase matching at least one spending category specified by apayor. The method further includes receiving a transfer of funds to theregistered one or more payment card accounts from the service provider.The payor instructs the service provider to transfer funds to theregistered one or more payment card accounts.

The present disclosure also provides a method of transferring an amountof money. The method includes registering information about a payee witha service provider. The method also includes transferring an initialamount of money to the service provider. At least one spending categoryis specified. The method further includes instructing the serviceprovider to pay a portion of the initial amount of money to the payeewhen the payee makes a qualified purchase with a payment card. Thequalified purchase is a purchase matching the at least one spendingcategory.

BRIEF DESCRIPTION OF THE DRAWINGS

These and other aspects of this disclosure will be readily apparent fromthe detailed description below and the appended drawings, which aremeant to illustrate and not to limit the disclosure, and in which:

FIG. 1 is a flow diagram depicting exemplary steps taken in transferringmoney from a payor's account to a payee's payment card account;

FIG. 2 is a flow diagram depicting exemplary steps taken in assessingthe amount of money to be transferred to the payee's payment cardaccount;

FIG. 3 is a flow diagram depicting an exemplary application oftransferring money according to the present disclosure where thepurchase value is less than the initial amount of money; and

FIG. 4 is a flow diagram depicting another exemplary application oftransferring money according to the present disclosure, where thepurchase value is more than the initial amount of money.

DETAILED DESCRIPTION

The terms “giftor” and “payor” are used throughout the description toindicate the party giving a sum of money to another party.

The terms “giftee,” “payee” or “recipient” are used throughout thedescription to indicate the party receiving the sum of money fromanother party.

As used herein, the term “payment card” refers to any financial accountwith transactional activity. A payment card includes, but is not limitedto, a credit card, a debit card or a financial account.

The disclosure can be used with different types of money transfer,including but not limited to money transfers as gifts. The use of “gift”in describing the money transfer is for illustrative purposes only andshould not be construed as limiting.

The present disclosure enables a payor to transfer money to a payee'spayment card account, without requiring an additional payment card orwithout acquiring the payee's payment card information. According to thepresent disclosure, the payee registers a payment card with a serviceprovider. The payee may register one or more payment cards with theservice provider. A payor transfers an initial amount of money to theservice provider to be given to the payee. The payor also indicates aspending category to the service provider. A spending category mayinclude one or more of an individual point of sale, a chain of stores,or a plurality of businesses in a same industry such as eating/drinkingestablishments. The payor may choose a single spending category, acombination of categories or all categories.

When the payee uses the registered payment card for a qualifiedpurchase, a portion of the initial amount of money is transferred to thepayee's payment card account. A qualified transaction occurs when apayee uses the registered payment card to make a purchase of thespecified spending category.

According to the teachings of the present disclosure, the payor maytransfer the initial amount of money to the service provider before thepayee registers one or more payment cards with the service provider. Inthat case, the service provider invites the payee to register one ormore of the payee payment cards with the service provider.

The service provider may accept money transfers from multiple payors.The service provider may keep the payor identities private, upon theindividual payor's request. Upon receiving the initial amount of money,the service provider stores the initial amount of money until the payeeuses the registered payment card to make a qualified use other means.

The service provider monitors the transaction history of the registeredpayee payment card for qualified purchases. Upon identifying a qualifiedpurchase, the service provider transfers a portion of the initial amountof money to the registered payee payment card account. Alternatively,upon the payee's request, the service provider may transfer a portion ofthe initial amount of money to a different payment card account that thepayee registered with the service provider.

For example, a payor may indicate that the initial amount of moneytransferred to the service provider may only be used for purchases fromthe Starbucks® coffee stores. When the payee uses a payment cardregistered with the service provider to make a purchase from aStarbucks® store, thus a qualified purchase, the service providertransfers a portion of the initial amount of money to the payee'sregistered payment card account. To determine the portion of the initialamount of money to be transferred to the payee's payment card account,the service provider compares the purchase amount to the initial amountof money. If the purchase amount is less than the initial amount ofmoney, the service provider transfers a portion of the initial amount ofmoney equal to the purchase amount to the payee's registered paymentcard account. Thus, the payee is reimbursed for the purchase from theStarbucks® store. If the purchase amount is larger than the initialamount of money, the service provider transfers the initial amount ofmoney in full to the payee's payment card account. Thus, the payee isreimbursed the amount of the initial amount of money.

The payee's payment card is initially charged for the full qualifiedpurchase amount just like a regular purchase. Reimbursement, up to theinitial amount, is transferred to the payee's payment card account afterthe service provider identifies that a qualifying charge has appeared onthe payee's payment card transaction history.

FIG. 1 illustrates a flow chart 100 depicting exemplary steps taken intransferring money from a payor's account to a payee's payment cardaccount. A payee registers a payment card with the service provider(step 102). The payor transfers an initial amount of money to theservice provider to be given to the payee (step 104). The payor furtherindicates a spending category, an individual point of sale, a chain ofstores, or a plurality of businesses in a same industry such aseating/drinking establishments to the service provider for which thepayee may spend a portion of the initial amount of money (step 106). Theservice provider notifies the payee about the initial amount of moneyand the spending category (step 108). According to one option, theservice provider may notify the payee about an identity of the payor(step 108). For example, the service provider may send a text message ora voice message to the payee's cellular phone or the service providermay send an e-mail to the payee's registered email address to notify thepayee. When the payee uses the registered payment card to make aqualified purchase (step 110), the service provider automaticallytransfers a portion of the initial amount of money to the payee'spayment card account (step 112). A qualified purchase is a purchase thatmatches the spending category specified by the payor. This transactionis seamless to the store where the payee makes the purchase.

FIG. 2 is a flow diagram 200 depicting exemplary steps taken inassessing the amount of money to be transferred to the payee's paymentcard account. When the payee provider compares the qualified purchasevalue with the initial amount given by the payor (step 204). If thequalified purchase value is smaller than the initial amount of money,the service provider transfers the qualified purchase value to theregistered payment card account of the payee (step 206). According toone option, the service provider may notify the payee of the remainingbalance of the initial amount (step 208). If the qualified purchasevalue is larger than the initial amount of money, the service providertransfers the initial amount of money in full to the registered paymentcard account of the payee (step 210).

FIG. 3 illustrates a flow diagram 300 depicting an exemplary applicationof the present disclosure. The payee registers a payment card with theservice provider (step 302). The payor transfers an initial amount ofmoney, $100, to the service provider to be given to the payee (step304). The payor also indicates a chain of stores, e.g., Burger King®, tothe service provider for which the payee may spend $100 given by thepayor (step 306). The service provider notifies the payee of the $100that can be spent at Burger King® stores (step 308). Upon the request ofthe payor, the service provider may also notify the payee of theidentity of the payor (step 308). However, the payor may chose to remainanonymous. When the payee uses the registered payment card to make apurchase of $10 from a Burger King® store (step 310), the serviceprovider identifies the qualified transaction on the payee's paymentcard transaction history and automatically transfers $10 to the payee'sregistered payment card account (step 312). The service provider alsonotifies the payee of the transaction of $10 (step 312). For example,the service provider may send a text message or a voice message to thepayee's cellular phone or an email to the payee's email addressindicating that the payee has been reimbursed for $10 spent at theBurger King®. According to one option, the service provider may alsonotify the payee of the remaining balance, e.g. $90 (step 314).

The payor may transfer the money to the service provider using a thirdparty service provider, e.g., a payment card or an escrow service. Forexample, the payor may use PayPal® to transfer the initial amount ofmoney to the service provider. The third party may charge a fee to thepayor for using the services. Similarly, the service provider may alsocharge a fee to the payor for using its services. The fee may be apercentage of the initial amount of money. The fee may also be a fixedamount of money. Alternatively, the service provider may charge theusage fee to the payee or to the third party. The service provider mayearn an interest on the initial amount of money or an unused portion ofthe initial amount of money. However, the service provider transfersavailable funds to the payee in a timely manner once the payee uses theregistered payment card for a qualifying purchase.

FIG. 4 illustrates a flow diagram 400 depicting another exemplaryapplication of the present disclosure. The payee registers a paymentcard with the service provider (step 402). The payor transfers aninitial amount of money, $10, to the service provider to be given to thepayee (step 404). The payor also indicates a spending category, e,g.,any grocery store, to the service provider for which the payee may spend$10 given by the payor (step 406). The service provider notifies thepayee of $10 that can be spent at any grocery store (step 408). Upon therequest of the payor, the service provider may also notify the payee ofthe identity of the payor (step 408). When the payee uses the registeredpayment card to make a purchase of $25 from a grocery store (step 410),the service provider identifies the qualified transaction on the payee'spayment card transaction history and automatically transfers $10 to thepayee's registered payment card account (step 412). The service provideralso notifies the payee of the transaction of $10 (step 412). Forexample, the service provider may send a text message or a voice messageto the payee's cellular phone or an email to the payee's email addressindicating that the payee has been reimbursed for $10 spent at thegrocery store.

A system embodiment includes a processor (a computer processor as isgenerally known in the art) and a computer-readable storage medium,which stores instructions which, when executed by the processor, causethe processor to perform operations disclosed herein. Acomputer-readable storage medium or storage device embodiment covers themedium or device as is generally known in the art that storesinstructions which, when executed by a processor, cause the processor toperform operations disclosed herein. Such a medium or device excludessignals per se, energy per se, and any other non-statutory subjectmatter.

The present disclosure is directed to a first party giving money to asecond party without giving an extra physical gift card to the secondparty or without requiring the financial information of the secondparty. While the disclosure has been shown and described with referenceto specific preferred embodiments, it should be understood by thoseskilled in the art that various changes in form and detail may be madetherein without departing from the spirit and scope of the disclosure asdefined by the following claims.

1. A method comprising: receiving a registration of a payee account at aservice provider, the payee account being associated with a payee;receiving, from a payor comprising an individual, an identification ofthe payee and a spending category, the payee account being registeredwith the service provider prior to the receiving; transmitting, via aprocessor of a computing device, a notice to the payee, wherein thenotice is linked to the payee account to yield a profile associated withthe spending category and the payee account; monitoring, via a processorof a computing device and according to the profile, purchasingtransactions made using the payee account for a qualified purchase; andbased on the qualified purchase, transferring via a processor of acomputing device, an amount of money to pay for at least part of thequalified purchase.
 2. The method of claim 1, wherein the payee accountis one of a debit account, a financial account, and a credit account. 3.The method of claim 1, further comprising: receiving an initial amountof money from a payor account into a service provider account, whereinthe amount of money is drawn from the initial amount of money.
 4. Themethod of claim 1, wherein multiple payors contribute to the amount ofmoney.
 5. The method of claim 1, wherein the amount of money istransferred to the payee account and is determined by comparing aninitial amount of money received from the payor to a purchase amountassociated with the qualified purchase.
 6. The method of claim 5,wherein if the purchase amount is less than the initial amount of money,then the amount of money transferred to the payee account is a fullamount of the qualified purchase, and wherein if the purchase amount ismore than the initial amount of money, then the amount of moneytransferred is the initial amount of money.
 7. The method of claim 1,further comprising: charging the payee account for the qualifiedpurchase; and reimbursing the payee account when the qualified purchaseappears on a transaction history of the payee account.
 8. The method ofclaim 1, further comprising: charging a percentage of an initial amountof money provided by the payor as a service fee for using the serviceprovider.
 9. The method of claim 8, wherein one of the payor, the payeeand a third party is charged the percentage of the initial amount ofmoney.
 10. The method of claim 1, wherein the spending categorycomprises one of an individual point of sale, a chain of stores, and aplurality of businesses in a same industry.
 11. The method of claim 1,wherein a third party pays at least a portion of an initial amount ofmoney which funds the amount of money transferred.
 12. A systemcomprising: a processor of a computer device; and a non-transitorycomputer-readable storage medium storing instructions which, whenexecuted by the processor of the computing device, cause the processorto perform operations comprising: receiving a registration of a payeeaccount at a service provider, the payee account being associated with apayee; receiving, from a payor comprising an individual, anidentification of the payee and a spending category, the payee accountbeing registered with the service provider prior to the receiving;transmitting a notice to the payee, wherein the notice is linked to thepayee account to yield a profile associated with the spending categoryand the payee account; monitoring, according to the profile, purchasingtransactions made using the payee account for a qualified purchase; andbased on the qualified purchase, transferring an amount of money to payfor at least part of the qualified purchase.
 13. The system of claim 12,wherein the payee account is one of a debit account, a financialaccount, and a credit account.
 14. The system of claim 12, wherein thenon-transitory computer-readable storage medium stores additionalinstructions which, when executed by the processor of the computingdevice, cause the processor of the computing device to perform a furtheroperation comprising: receiving an initial amount of money from a payoraccount into a service provider account, wherein the amount of money isdrawn from the initial amount of money.
 15. The system of claim 12,wherein multiple payors contribute to the amount of money.
 16. Thesystem of claim 12, wherein the amount of money is transferred to thepayee account and is determined by comparing an initial amount of moneyreceived from the payor to a purchase amount associated with thequalified purchase.
 17. The system of claim 16, wherein if the purchaseamount is less than the initial amount of money, then the amount ofmoney transferred to the payee account is a full amount of the qualifiedpurchase, and wherein if the purchase amount is more than the initialamount of money, then the amount of money transferred is the initialamount of money.
 18. The system of claim 12, wherein the non-transitorycomputer-readable storage medium stores additional instructions which,when executed by the processor of the computing device, cause theprocessor of the computing device to perform a further operationcomprising: charging the payee account for the qualified purchase andreimbursing the payee account when the qualified purchase appears on atransaction history of the payee account.
 19. The system of claim 12,wherein the non-transitory computer-readable storage medium storesadditional instructions which, when executed by the processor of acomputing device, cause the processor of the computing device to performa further operation comprising: charging a percentage of an initialamount of money provided by the payor as a service fee for using theservice provider.
 20. A non-transitory computer-readable storage devicestoring instructions which, when executed by a processor of a computingdevice, cause the processor of the computing device to performoperations comprising: receiving a registration of a payee account at aservice provider, the payee account being associated with a payee;receiving, from a payor comprising an individual, an identification ofthe payee and a spending category, the payee account being registeredwith the service provider prior to the receiving; transmitting a noticeto the payee, wherein the notice is linked to the payee account to yielda profile associated with the spending category and the payee account;monitoring, according to the profile, purchasing transactions made usingthe payee account for a qualified purchase; and based on the qualifiedpurchase, transferring an amount of money to pay for at least part ofthe qualified purchase.